South Korea Just Bet $20 Billion on SK hynix Stock

South Korea has invested $20 billion in SK hynix stock following a successful U.S. listing. SK hynix, a leading memory chip maker, raised approximately $26.5 billion through a record-breaking American depositary receipts (ADR) offering in July. The company has surged 1,400% over the last five years but has also dropped over 40% from all-time highs.

The Foreign Exchange Stabilization Fund, a joint venture of South Korea's finance ministry and central bank, purchased the dollars to stabilize the currency and prevent excessive volatility. SK hynix's earnings have been bolstered by the growing demand for AI infrastructure, particularly high-bandwidth memory chips. The company's strong financial performance, coupled with its strategic positioning in the AI boom, has earned it a high valuation from analysts.